Americas ETP News
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Standard & Poor's Announces Changes In The S&P/TSX Venture Composite Index
January 6, 2011--Standard & Poor's will make the following changes in the S&P/TSX Venture Composite Index after the close of trading on Friday, January 7, 2011:
Strathmore Minerals Corp. (TSXVN:STM) will be removed from the index.
The company will graduate to trade on the TSX under the same ticker symbol.
Company additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the company.
Source: Standard & Poors
CFTC.gov Commitments of Traders Reports Update
January 6, 2011--The current reports for the week of January 4, 2011 are now available.
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Source: CFTC.gov
One Fund® ETF Surpasses $10 Million Assets Under Management
January 6, 2011--U.S. One, Inc., issuer of the One Fund® Exchange Traded Fund (ETF), has surpassed $10 million assets under management.
"We achieved the $10M AUM milestone in eight months, which is remarkable for an inaugural ETF from a start up firm. We attribute our success to our investment philosophy and approach, our product position in a crowded industry and to our growing adoption among financial advisors and individual investors as a low cost, globally diversified ETF," states Paul Hrabal, Chief Investment Officer for One Fund®.
U.S. One, Inc. advocates a passive index-based approach to global investing. "We do not believe anyone can successfully pick winning stocks, winning sectors or winning geographies over the long haul. Our firm instead focuses on buying the entire market worldwide at the lowest possible cost to achieve a shareholder return that closely tracks the global market," comments Hrabal. In a recent study, just 0.6% of stock picking mutual funds beat the market over a 32 year period.1
The ETF market making community has also been instrumental to the Fund's success. Unlike some new ETFs that have launched recently, One Fund® has consistently traded very close to its underlying value. This has reduced the transaction costs for shareholders buying and selling One Fund® shares. An industry publication recently commented, "In general, One Fund® has been quite effective in keeping the deviation of the (Fund's) market price to NAV down to a minimum, especially relative to other active ETF peers."2
Source: Foreside Fund Services, LLC
BNY Mellon ADR Index Monthly Performance Review is Now Available
January 6, 2011-The BNY Mellon ADR Index Monthly Performance Review is now available
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Source: BNY Mellon
US Institutional Equity Trading 2010—2011: Outflows, Outrage, and Balance
January 6, 2011--Executive Summary
US equity managers witnessed a challenging market environment in 2010 that once again impacted long term performance and reduced investor confidence. Focused attention on high-frequency trading, market structure challenges, and lower fee investment alternatives all contributed to new concerns. Looking back, it is fair to say the 2010 equity markets will be remembered unfavorably.
Specifically, 2010 will be remembered as the “Year of the Flash Crash”. Data shows the months of May and June were the most active due to higher volatility and increased selling pressures. Preventing another major market disruption is important to restoring confidence, but is not the only action being taken. New investments into front office capability are being made to address markets that are more complex, increasingly fragmented, and much faster.
A number of buy-side firms are spending more time and money on figuring out new ways to remove trading inefficiencies. They are looking for new ways to improve electronic trading capabilities and leveraging existing relationships to increase their opportunity for receiving best execution. Although there are some that feel they have reached a point of automation saturation, the majority of the buy side will be careful about investing any additional money into equity trading desks until conditions improve or volatility picks up again.
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Source: TABB Group
Brazil launches fresh currency controls
January 6, 2011--The Brazilian real fell sharply after the country launched a fresh attempt to rein in gains in its currency by imposing reserve requirements on domestic banks’ foreign exchange positions.
Brazil’s central bank said it would act to discourage short positions in US dollars against the real in a bid to curb speculative trading, which has pushed up the value of its currency in recent months.
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Source: FT.com
SEI Expands Middle-office Services with Enhanced Pricing and Valuation Capabilities
Independent Validation Meets Demand for Increased Accuracy and Transparency
January 6, 2011--
SEI today announced that it has extended its array of middle-office services by enhancing its asset pricing and valuation validation solution for investment managers. The solution, which leverages the independent valuation and pricing models of industry-leading third-party pricing providers, is designed to provide managers with more accurate and independent pricing verification.
The solution is the latest in a series of developments by SEI to help managers address the challenges they are facing in valuing their investments due to rapid changes in liquidity and volatility in global securities markets, while meeting the growing investor demands for conflict-free transparency in a climate of increasing global regulatory and investor scrutiny.
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Source: SEI Investments Company
Global X launches first aluminium ETF
January 5, 2011--Global X Funds, the New York based provider of exchange traded funds, today launched the Global X Aluminum ETF (Ticker: ALUM). The launch is the latest expansion in the ETF issuer’s global commodity producer funds and is the first ETF globally focused on aluminum.
Aluminum is one of the most heavily consumed metals in the world, its malleable and corrosion-resistant properties make it important for applications in energy, industrials, and consumer goods. In the last decade, the demand for aluminum has grown 38% compared to 20% for other metals, according to Bloomberg.
“We are pleased to offer the Aluminum ETF, which follows in the footsteps of our other highly successful industrial metal ETF, the Global X Copper Miners ETF (Ticker: COPX),” says Bruno del Ama, CEO of Global X Funds. “Aluminum has seen tremendous price increases as a result of increased global demand, especially from China and India. Its invaluable properties to various industries make it essential for future economic growth.”
The Global X Aluminum ETF tracks the Solactive Global Aluminum Index, which is designed to track the performance of the largest and most liquid companies globally active in some aspect of the aluminum industry. As of December 13, 2010, the three largest components of the index were Rio Tinto plc, Alcoa, Inc. and Norsk Hydro ASA.
Source: Global X Funds
CFTC.gov Financial Data for Futures Commission Merchants Update
January 5, 2011---Selected FCM financial data as of November 30, 2010 (from reports filed by December 31, 2010) are now available.
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Source: CFTC.gov
NSX Releases Expanded Year-End 2010 ETF/ETN Data Reports Showing Growth of ETF Market Over Past 5 Years:Assets Under Management (AUM) Top $1 Trillion
January 5, 2011--Highlights from the Year-End December 2010 report include:
AUM surpassed $1 trillion for the first time, an increase of approximately 28% over December 2009 month-end when assets totaled $790.9 billion.
December 2010 net cash flows totaled $19 billion, and 2010 net cash inflows totaled $119 billion, marking the fourth consecutive year of cash flows in excess of $100 billion.
ETF/ETN Share Volume averaged 1.46 billion shares per day.
ETF/ETN Notional Trading Volume totaled $18.2 trillion, representing 29% of all U.S. equity trading volume.
145 U.S. listed products have surpassed $1 billion in AUM and over 500 ETFs have surpassed $100 million in AUM.
At the end of December 2010, there were 1099 listed products, nearly a five-fold increase compared to December 2005, when the number of listed products totaled 221.
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Source: National Stock Exchange, Inc. (NSX®)
